National Programme of Training
for
Boards of Management of Primary Schools
Handout
Board Finances & the Role of Treasurer
AN ROINN
OIDEACHAIS
AG US EOLAÍOCHT A
DEPARTMENT OF
EDUCAT ION
AND SCIENCE
2008
Education Act 1998
S. 18 (1)
A board shall keep all proper and usual accounts
and records of all monies received by it or
expenditure of such monies incurred by it and shall
ensure that in each year all such accounts are
properly audited or certified in accordance with
best accounting practice.
Accounts
Proper books, records and accounts maintained in a
format which is…

Easily understood

Meaningful – provides information for budgeting and
projection

Accurate
In accordance with recommended Accounting Practices

Subject to audit by Department of Education & Science.

Slide 2
Slide 3
Proper accounts and records kept…
Board is accountable to…

 To ensure accurate information is available on a regular
basis
 To ensure that decision making is based on accurate
information
 To ensure that the Board can fulfil its responsibilities as a
board.
School community

Parents

Staff

Pupils

Patron

Trustees and their auditors

DES and their auditors (internal auditors, C&AG, EU)
Slide 4
The board shall elect a treasurer
based on…




Slide 5
The Duties of the Treasurer

Keep the school accounts

Prepare budgets
Capability

Make lodgements
Experience

Arrange for payments

Arrange for Petty Cash

Deal with payrolls, including PAYE, PRSI, PRSAs

Comply with Revenue requirements – P30, P60, P45

Keep vouchers of payment for inspection

Present an up to date statement of accounts at each
Board meeting

Arrange for payment of insurance.
Responsibility
Interest
Slide 6
Keeping accounts
Slide 7
Systems of Bookkeeping
 Keep it simple
 Manual Analysis Books
 Avoid duplication
 Computer Spreadsheets
 Analyse information
Slide 8
 Software Accounting Packages.
Slide 9
Bank Accounts…
Accounting practice…



All State grants from the DES shall be used only for
the purpose for which they were provided
A total account of the BoM income and expenditure
shall be prepared at the end of the school year
Accounts should be properly certified or audited.

Limit the number of bank accounts

DES now paying into one account.
Slide 10
Slide 11
Accounting Practice

Ensure all funds due are




claimed
received
recorded
Accounting Practice
When recording income, note…


All monies received must be lodged to the
school bank account.


the date
the source
the amount
the purpose for which the money was
provided.
Slide 12
Maintenance of Receipts




Maintenance of Receipts contd.
 Remittance Advice from DES
Lodgement Book

Slide 13
Supplied by bank
Stored in secure place
Lodge all cash/cheques received
Lodge regularly
Analyse lodgement
 Statement of grants issued
 Cross reference with date and amount of Electronic
Funds Transfer (EFT)
 File in remitter and date order.
Large sums of cash should never be held on
school premises.
Slide 14
Payments…




All payments should be made by cheque or direct debit
All cheque payments/withdrawals must be signed by
Chairperson and Treasurer
Chairperson may nominate another board member other
than the treasurer to sign in his/her absence
All payments to be…
• authorised
• recorded
• paid on a timely basis
• according to plan/budget.
Slide 16
Slide 15
Recording details of payments
•
Date
•
Payee
•
Cheque number
•
Amount
•
Analyse.
Slide 17
Cheque Book…
Supplied by the bank
 Stored in a secure place
 Cheques always payable to third parties
 All cheques crossed “a/c payee only, not negotiable”
 Cheques for Petty Cash made out to Petty Cash
 Cancelled cheques retained
 Cheques cancelled after issue – notify bank
 Cheque only issued where


Invoice has been issued, checked and approved
Wages – when allowances, deductions have been
calculated.
Cheque Book contd…




Payment never made without supporting
documentation
Invoice checked for evidence of receipt of
goods/services/quantity/quality/price
On making payment
 Mark invoice paid
 Cross reference with cheque number
 Date of payment
 Cheque stub – insert invoice number
Following payment - file invoice.
Slide 18
Slide 19
Preparing a Budget
Maintenance of cheque payments


Write up on a timely basis
Total on a monthly basis and accumulate year to date
at the end of each month

Payment analysed across main expenditure headings

All entries in cheque number sequence


Where cheque is cancelled write in date, cancelled
under Payee column and ‘Nil’ in cheque amount column




Ensure all direct debits and bank charges entered.

At start of financial year the Board should prepare and
adopt a budget for the year
Board expenditure should not exceed annual income
Budget should provide for all relevant items of
expenditure e.g. operating costs, insurance, classroom
requisites etc.
Budget for substantial expenditure which arises only
periodically
Finance subcommittee if needed.
(See Section 19 (f) P. 20-21,
DES Constitution & Rules of Procedure)
Slide 20
Slide 21
Sample Income
Preparing a Budget


No one method of budget preparation is suitable for all
boards

Should be broken into shorter periods – terms / months



Starting points
 overall income





definite liabilities

Considerations
 cash flow - time of year when grants are paid



priorities for BoM.


Slide 22
Slide 23
Capital Grants…
Capitation Grant

Capitation Grants (based on number of pupils in the school
as of 30/09 of school year)
 €200.00 (Sept 2008)
 Received from the Department of Education and Science
 Money used to meet the operating costs of the school
 Heating
 Cleaning
 Insurance
 Teaching materials
 Maintenance of school premises and grounds.
Slide 24
Capitation Grants
Ancillary Services Grant
Minor Works Grant
Hire of School Premises
Oil Rebate, if available
Water Rates Rebate, if available
Curriculum Grants
Learning Support
Voluntary Contribution
Fund Raising
Other.






Received from the Department of Education and Science
Not to be used for general maintenance or repairs
Capital expenditure can only be used for major capital
expenditure e.g. extension
Approval in writing from Patron and Trustees
Written sanction from the Department of Education and
Science
Comply with current building regulations and planning
regulations.
Slide 25
Fundraising
Other DES Grants

School Accommodation funding

Disadvantage Schemes

ICT, Broadband

School Books Grant Scheme

Learning Support

Grants for Special Education

School Transport

Supervision

Language Support (< 14 pupils)

Modern Languages (if applicable)

Other






Fundraising in the name of the school must have prior
consent of the Board
Parents’ Association should consult with the Board about
fundraising for the school or school projects
The expenditure of these funds is by the Board in
consultation with Parents’ Association
All monies raised for an agreed project should be lodged to
the school account
Monies raised should be used for the purposes for which the
money was collected
Parents’ Association entitled to raise funds for own
administration.
Slide 26
Slide 27
Sample Budget - Expenditure
Wages


Caretaker
Cleaning
Secretary



Consumables
 Equipment/books









Maintenance
Repairs & Maintenance
 Minor building works


Office
Banking
Taxes
Insurance

BoM
Training & staff development
 Pastoral/ethos
 Expenses
Administration

Payslip

PAYE/PRSI

Personal Retirement Savings Accounts

Compliance with Revenue Requirements

P30 Remittance Form for return to Revenue

P35 Annual Return to Revenue

P45 Termination to employee + copy to Tax Office

P60 Annual (to employee).

Electricity
Telephone
Oil
Water
Cleaning materials



Utilities

Classroom
Payroll
Grants e.g.
Learning Support
 Book Grant

Slide 28
Slide 29
Wage Records: good practice…
Wage Records contd…
Secretary/Caretaker/Cleaner/Part Time Teachers





Payment should never made in advance of calculations
Payment made by cheque or Electronic Funds Transfer
only
Signature of employee when paid
Remit PAYE/PRSI promptly in line with schedule agreed
with revenue






Approved allowances
Mandatory deductions (PAYE, PRSI)
Agreed deductions (PRSA)
Attendance records
Tax deduction card
Cheque/Electronic Funds Transfer
Submit P35 promptly at the end of year.
Slide 30
Slide 31
Contracts of Employment
Insurance

Employees other than teachers, SNAs

Written rather than verbal

Terms and conditions

Job description

Holidays

Safety, Health & Welfare at Work 2005 Act.



Duty of the trustees (delegated to Board) to put
comprehensive insurance cover in place
Board shall ensure that all insurances are effected and
maintained
Copy of policy available to interested parties (e.g.
trustees, patron…)
Slide 32

Schools may arrange for parents to take out personal
accident insurance cover for pupils.
Slide 33
Treasurer’s Records…
Bank Statements
Consist of…


Bank statements and cheque stubs

Cheque payments analysis

Cash receipts record

Invoice file

Record of grants received.

Receive monthly from bank

File in numerical order


Check Direct Debits, Interest, Electronic Funds
Transfer, Other Charges
Reconcile on monthly basis.
Slide 34
Slide 35
Monthly reconciliation…
Example of Reconciliation
Check lodgement on statement against the entry in receipts
book

Part A: Establishing Book Balance at 29.02.08

Check cheque/charge against entry in cheque payments books
Balance per book

Adjust for differences or omissions
Lodgements per receipts book
3,726.85
Payments per cheque payment
(3,607.91)


Take the closing balance of the previous month (reconciled
book balance) and the total lodgements for month, deduct
payments for month and this will give closing balance for
current month
Take the balance per Bank Statement

Add lodgements not credited on Bank Statement

Deduct cheques not debited on Bank Statement

Resulting figure should equal the Closing Book Balance.
251.42
Balance per books

370.36
Part B: Reconciliation
Balance per bank statement

Must be presented at every Board Meeting. Should
indicate…
 an up to date statement of the school account
 details of income and expenditure since the previous
meeting
 true Bank Balance at the end of the preceding month
(reconciled)
 payments which will fall due before the next meeting
 any income due in the same period.
1693.47
Add lodgements not credited at 29.02.08 nil
Deduct cheques not debited at 29.02.08 (1340.61)
Add: cheque cancelled
17.50
Balance per Book Balance
Slide 36
Treasurer’s Report…
Slide 37
Sample Report for Board Meeting…
€
Balance per bank statement at 31-10-08
Less cheques outstanding
(1,300)
(attach list of cheques + amounts paid but not
cashed)
True Bank balance 31/10/08
3,000
Less payments outstanding
1,000
(list bills due for payment in current month
attached)
2,000
Add Income received since 31-10-08


Pre-numbered petty cash dockets should be used
to record every transaction
Receipts for purchases to accompany signed
docket
Useful Websites

Patron Bodies own websites

www.education.ie

www.entemp.ie

www.nera.ie
Receipts filed and stored.
Slide 40
Nil
2,000
Slide 39
Petty Cash…

4,300
(bank statement attached)
Slide 38
Operated by one person only and checked weekly
by nominated person
(1323.11)
370.36
True Bank position

118.94
Slide 42
Essential Reading
Reminders




DES (2007) Constitution of Boards and Rules of
Procedure, Sections 9 and 12
DES (2007) Primary Boards of Management Information
Manual
CPSMA (2007) Management Board Members’ Handbook



Register signed
Evaluations completed and returned
Handouts
Arrangements for next training session (if
applicable)

Other modules available include:




Slide 43
Board as Corporate Entity (for whole board)
Appointment Procedures (for Chair & Principal)
Child Protection (for whole board)
Overview of Legislation (for whole board)
Slide 44
Organisations and Acronyms
Organisations
Board of Education
Church of Ireland Board of Education,
Church of Ireland House,
Church Avenue, Rathmines, Dublin 6
Tel: 01 497 8422
CPSMA
Catholic Primary School Management Association,
St Patrick’s College, Maynooth, Co Kildare
Tel: 1850 – 407200
email: info@cpsma.ie
website: www.cpsma.ie
DES
Department of Education and Science,
Marlborough St., Dublin 1
Tel: 01 889 6400
email: info@education.gov.ie
website: www.education.ie
Educate Together
Educate Together,
H8a Centrepoint,
Oak Drive, Dublin 12
Tel: 01 429 2500
email: info@educatetogether.ie website: www.educatetogether.ie
Foras Pátrúnachta
Foras Pátrúnachta na Scoileanna Lán-Ghaeilge Teo,
92 Bóthar Sheannaigh,
Rath Éanaigh, BAC 5
Tel: 01 8314487
email: foraspatrunachta@hotmail.com
website: www.foras.ie
IMPACT
Trade Union: www.impact.ie
INTO
Irish National Teachers Organisation: www.into.ie
IPPN
Irish Primary Principals’ Network: www.ippn.ie
NABMSE
National Association of Boards of Management in Special
Education,
Kildare Education Centre, Friary Rd, Kildare, Co Kildare.
Tel: 045 533 753
email: nabmse1@eircom.net
website: www.nabmse.org/
NCCA
National Council for Curriculum and Assessment,
24 Merrion Square, Dublin 2
Tel: 01 661 7177
email: info@ncca.ie
website: www.ncca.ie
8
NCTE
National Centre for Technology in Education,
Dublin City University, Dublin 9.
Tel: 01 700 8200
email: info@ncte.ie
website: www.ncte.ie
NCSE
National Council for Special Education,
1-2 Mill Street, Trim, Co. Meath.
Tel: 046 948 6400
email: info@ncse.ie
website: www.ncse.ie
NEPS
NEWB
PPDS
SESS
Teaching Council
Teacher Education Section (TES)
National Educational Psychological Service,
Frederick Court, 24/27 North Frederick St., Dublin 1
Tel: 01 889 2700
website: www.education.ie
National Education Welfare Board,
16-22 Green Street Dublin 7
Tel: 01 8738700
email: info@newb.ie
website: www.newb.ie
Primary Professional Development Service,
Dolcáin House,
Monastery Road,
Clondalkin, Dublin 22
Tel: 01 464 2227
Special Education Support Service,
Cork Education Support Centre,
The Rectory, Western Rd, Cork.
Tel: 1850 200 884
email: info@sess.ie
website: www.sess.ie
The Teaching Council,
Block A,
Maynooth Business campus,
Maynooth,
Co. Kildare
Tel: LoCall 1890 224 224, 01 651 7900
email: info@teachingcouncil.ie
website: www.teachingcouncil.ie
Teacher Education Section,
Department of Education & Science,
Marlborough St.,
Dublin 1
This unit has a role in all national initiatives
9
Acronyms
AP
Assistant Principal
BOM
Board of Management
DP
Deputy Principal
DEIS
Early Start
HSCL
IEP
Inspector
IPLP
Mainstream
Teacher
NABMSE
NPC
NQT
PA
Partners
Patron
PoR
RTT
SDP Day
SENO
Shared teachers
SIPTU
SNA
Special duties
teacher
Trustees
Visiting teachers
VTT
Delivering Equality of Opportunity in Schools – an action plan for
educational inclusion
The Early Start Programme is a one-year programme offered to children
aged 3-4 years in selected schools in areas of designated disadvantage
Home School Community Liaison
Individual Educational Plan
Department of Education and Science inspector
Individual Profile and Learning Programme
Class teacher
National Association of Boards of Management in Special Education
National Parents Council
Newly qualified teacher
Parent Association
Parents, Board of Management etc. involved in a school’s activities
Schools operate under a patron body e.g. Catholic Church, Educate
Together, Church of Ireland Board of Education, An Foras Pátrúnachta,
Islamic Board of Education …
Post of Responsibility e.g. deputy principal, assistant principal, special
duties teacher
Resource Teacher for Travellers
Each school has sanction to close for one day to engage in planning
activities
Special Education Needs Organiser
Teachers working in a number of schools to support children with special
needs
Trade Union
Special Needs Assistant
Teachers with a special responsibility for organisational or curriculum
issues in addition to their teaching duties
The persons nominated by the Patron as trustees of the school. They are
parties to the lease of the school premises. The Trustees undertake that
the buildings shall continue to be used as a national school for the term of
the lease & guarantee that the premises and contents are insured
Teachers working with pupils who are sensory impaired
Visiting Teacher for Travellers
10